United Nations Development Programme, India

Lasting Solutions for Development Challenges

Chapter 2

Climate Change
Is India a Solution to the Problem
or a Problem to the Solution?

By :
Diya, Nakhastra, Shyne(UD)
Subhas (EP)
What is UNDP ?
 UN's global development network to help people build a better life .

 UNDP advocates for the Millennium Development Goals (MDGs), the

concept of human development and the need to empower women.

 Its series of global, regional and country-focused Human

Development Reports are a powerful advocacy tool with a focus on
people-centered, inclusive, equitable and sustainable growth.
Is India a Solution to the Problem or a Problem

toAction
theonSolution?
climate change between the
developed and developing countries has
been sharply polarized for a long-time.
This is because India forcefully,and
rightfully, made development and
poverty eradication key issues within the
climate change negotiation.

 There are many myths being made of

India’s stands in the context of climate
change negotiation and discussions.
Author has given facts & figures against
each myth and tried to dispel them.
About the Author : Prodipto Ghosh
 Prodipto Ghosh PHD in Economics specialising in Climate Change
Modelling from Pittsburgh University USA.
 Bachelors of Technology in Chemical Engineering from IIT Delhi.

 He is Distinguished Fellow at The Energy & Resources Institute (TERI)

 Member of the Prime Minister’s Council on Climate Change.
 Member of the National Expert Committee on Climate Change,
 Member of the National Security Advisory Board, and Scientific
Consultant in the Office of the Principal Scientific Adviser to the Govt.
of India.

In this article he draws a line between facts and fictions by

demystifying six myths built around India’s stands on climate change.
His analysis brings out that a country can have both growth and less
carbon emissions.
India’s Development Challenges :
 India is one of the
fastest economies of the
world.
 India stands at 128th
position in the World
Human Development
Index. No country in
history has improved its
level of human
development without
corresponding increase in
per capita use of energy.
Myth 1: India has done nothing to promote
clean energy and energy conservation
Fact:
Over several decades India has pursued policies and publicly funded
programs focused on energy conservation and deployment of
renewable energy technologies. This has been backed by legislation,
regulation and tariffs arrangements. Some of these are:
 Reforming Energy Markets
 New and Renewable Energy Policy, 2005
 Rural Electrification Policy, 2006
 Biodiesel Purchase Policy
 Ethanol Blending of Gasoline
 Energy Conservation Act, 2001
 Energy Conservation Building Code, 2006
Bachat Lamp Yojana (Efficient Lamps Program)
50,000 MW Hydroelectric Initiative, 2003 etc.
Myth 2: India remains a profligate user of energy
Fact:
 In integrated steel plants the energy
consumption has declined by more than 22%
during 1990-2005.
 In cement Industries, the annual decline
in average specific energy consumption is 7.5
percent during 1996-2006.
 The fertilizer sector has witnessed on
average 26% and 25% improvements in
specific energy consumption in ammonia and
urea plants, respectively, during 1988-2003.
 The trend is similar in other major energy
using sectors like aluminum, paper, power
plants and petroleum refining.
Since mid-1980s, India’s energy intensity (that is energy consumed per
unit of GDP) has been declining steadily.
Myth 2: India remains a profligate user of energy
Fact:
 The CO2 intensity data for India is
better than that of Germany and
same as that of Japan that is
universally cited as the world’s most
energy efficient economy.

 Indian policymakers assert that

the IEA, in fact, overestimates
India’s energy intensity, by imputing
to Indian coal the calorific value
typical of European coals, while the
Indian coal calorific values are
significantly lower due to much
higher ash content.
Myth 3
India is not concerned over its vulnerability to climate change

 ISSUE:
India is highly vulnerable to climate related events
ex. FLOODS, DROUGHTS, CYCLONES.

 STEPS:
Public funded programs to address the direct impact impacts and
prevention the climatic risks.

 OBJECTIVES:
Reduction of vulnerability to climatic risks by major anti poverty and
rural development programs.
Myth 3
India is not concerned over its vulnerability to climate change

 ANNUAL FEDERAL GOVT

EXPENDITURE TO ADDRESS
CLIMATE VARIABILITY:

At present Govt. of India spends

not less than 12% of its annual
budget or 2.63% of the GDP
(Gross Domestic Product) on these
programs.
Myth 4
India is an environmentally unsustainable economy

 FACT:
• Less CO₂ emission from food sectors
• Good recycling of municipal wastes
• with concern about fuel efficiency,
there is a rapid increase in vehicles
powered by natural gas.

The National Geographic’s Greendex developed and developing

countries for environmental sustainability has ranked India as the
world’s most environmentally sustainable society in May 2009.
 Myth 5 - India’s GHG emissions will grow uncontrollably in the future

Facts presented by the Author

 Present GDP growth rate of 8% /annum

at 3.7% increase in energy use.

 Till 2030-31, the GDP growth will remain

in the range of 8.5-9%/annum
assuming that last decade’s observed
annual energy efficiency increase of 1.5%
and overall efficiency of resource use at
3%/annum continues.

 The Indian per capita CO2 emissions grow

only modestly from 1 tonne per capita in
2004-05 to 2.77 tonnes per capita in
2030-31.
The energy intensity of the GDP will continue
to decline: from 0.11 kgoe/US$ GDP in
2003-04 to 0.04 kgoe/US$ GDP in 2030-31
Myth 5 - India’s GHG emissions will grow uncontrollably in the future

Related Facts

 India's greenhouse gas (GHG) emissions

rose by 58% between 1994 and 2007 (as
per Greenhouse gas Inventory of 2007
emissions- MOEF).

 India is now the world's fifth-largest

emitter of greenhouse gases, ranking
behind China, the United States, the
European Union, and Russia.

 From 1994 to 2007, India reduced the

emissions intensity of its economy by
30%. India has announced plans to
reduce intensity by further 20-25%
between 2005 and 2020.
Myth 6 - What is the fuss all about? Reducing GHG emissions
pays for itself or, at best, is low cost

Facts presented by the Author

CO2 emissions mitigation through capital

investments in all relevant energy sectors,
the undiscounted incremental investment
costs are $ 800 billion and the undiscounted
incremental energy system costs are in excess
of $ 1 trillion for CO2 reduction of 30 %

The shifting of resources towards CO2

mitigation from other physical and social
infrastructure and production sectors would
definitely lead to a reduction in GDP growth.
Myth 6 - What is the fuss all about? Reducing GHG emissions
pays for itself or, at best, is low cost ...contd..
Facts presented by the Author

On a max. carbon tax of $ 80/tonne CO2

6.1% CO2 reduction (revenue positive case)

GDP losses exceeding $ 19 trillion
5.2 %CO2 reduction (revenue neutral case)
GDP losses exceeding $ 17 trillion
The Way Forward

GHG Mitigation
 Significant Mitigation Actions - will lead
to diversion from development and
poverty eradication efforts .
 Development challenges for key
developing countries are typical of other
developing countries.

Sector Targets
 Externally imposed sector targets are an
inefficient and impractical mean of GHG
mitigation.
 UNFCCC speaks only of promotion and
cooperation in development, application
and diffusion of technologies, practices
and process for mitigation of GHG in
relevant sectors.
The Way Forward
Nationally Appropriate Mitigation Actions:
 The BAP requires developing countries to formulate and implement Nationally
Appropriate Mitigation Actions (NAMAs) supported and enabled by finance,
technology and capacity building that are ‘monitorable, verifiable and
reportable (MRV)’.

Financing
 In India’s view financial support for NAMAs of developing countries is not ‘aid’
but a discharge of responsibility by developed countries.

Technology
 In India’s view, technology is the key to both mitigating and adapting to climate
change. It comprises of three elements:
-a global collaborative effort on research and development (R&D)
-existing and new clean technologies must be made available to
developing countries
-a network of regional technology innovation centres should be set
up in developing countries to catalyze collaborative R&D
The Way Forward

Adaptation
 India’s experience has been that the
resource and technology needs for
adaptation are of the same order as for
mitigation.

Sustainable Production and Consumption

 High per capita GHG emissions in
developed countries are the inevitable
outcome of unsustainable lifestyles
comprising unsustainable patterns of
production and consumption.
Conclusion

 India was not a part of the climate problem, is not till now and will not be so
in future.

 India’s (and for that matter all developing countries) concerns about
economic growth and poverty eradication are legitimate and must be fully
respected in any global climate regime, as indeed stated unequivocally in the
UNFCCC and the Bali Action Plan.

 The cause of climate change is the unsustainable emission of developed

countries. They have to take leadership to drastically reduce their emissions and
this will involve modification of their lifestyles but no one is suggesting that they
become poor.

 The proposals made by India (and other developing countries) in respect of

the future climate regime are constructive and must be given serious consideration
in any discussions on global climate action.